Say When

The Department of Land and Natural Resources (DLNR), Division of Conservation and Resources Enforcement (DOCARE) has received grant funding to pilot an innovative Resources Enforcement Educating Fishers (REEF) project, starting this spring. The funding is provided by the Harold K.L. Castle Foundation.

Across the island, the most common coastal interaction for DOCARE is with fishermen. Often this interaction is a punitive measure like a citation.

DOCARE, the enforcement arm of DLNR, has long recognized the importance of building relationships with the public. The goal of the REEF project is to provide opportunities for officers and fishers to engage in activities together, such as site visits to walk shorelines and clarify state rules and regulations.

Studies have shown that when an officer takes the time to participate in something that is important to a certain segment of the community, this shows that they really care about people, not just about writing citations.

To address this concern, a component of the REEF project will include a newly developed `Ike Kai curriculum that incorporates relevant cultural knowledge and sensitivities, while covering rules and regulations from the Division of Aquatic Resources (DAR) and the Division of Boating and Ocean Recreation (DOBOR).

DOCARE Chief Tommy Friel says, “Education is a critical component to help people understand why it is important to comply with the rules and regulations our officers enforce. Building this relationship is the means by which education is best achieved.”

At its December meeting, the Harold K.L. Castle Foundation’s board of directors approved a $10,000 donation to Catholic Charities Hawaii to help meet the growing academic needs of school students in the Puna area of the Hawaii Island affected by the Kilauea volcano lava flow.“Catholic Charities will oversee the disbursement of grant funds to help students at six Hawaii Island Department of Education schools and three charter schools,” said Terry George, Harold K.L. Castle Foundation president and CEO.

Mary A. Correa, outgoing Complex Area Superintendent for Ka‘u-Kea‘au-Pahoa, called the donation “Absolutely wonderful!” “At this special time of the year, it is so humbling to see the community stepping forward to help our students,” she said.

George said the Foundation hopes “this modest grant” will spur other organizations and individuals to make donations to the schools to help students continue their academic pursuits in the face of the continuing disruption caused from the lava flow.

To make a donation or for more information about Hawaii Island students affected by the Kilauea lava flow in Puna, contact incoming Complex Area Superintendent Chad Farias at 808-982-4719 or Elizabeth Murph at Catholic Charities Hawaii at 808-961-7051.

To learn more about recipients of the Castle Foundation’s December grants or for more information on the Foundation’s grant giving, visit www.castlefoundation.org.

Alexander & Baldwin, Inc. announced today that it has agreed to acquire a portfolio of commercial properties in Hawaii from Kaneohe Ranch and the Harold K. L. Castle Foundation (“HKL Castle Foundation”) for $373 million ($260 million of Kaneohe Ranch assets and $113 million of HKL Castle Foundation assets). Due diligence was completed yesterday and, subject to the satisfaction of normal closing conditions, the transaction is anticipated to close in late December.

Kaneohe Ranch Building

The portfolio, which encompasses grocery- and drug store-anchored shopping centers, retail strip centers, light industrial properties and ground leases, is primarily located in the Windward Oahu town of Kailua. The portfolio also includes about 585 acres of mostly preservation-zoned land in Kailua. A&B will fund the purchase with proceeds from the planned sale of several commercial properties it owns on the Mainland, along with other tax-deferred 1031 proceeds.

“With this purchase, we will be acquiring one of the state’s largest and finest retail portfolios, in an excellent market. This is an opportunity that rarely arises in Hawaii, and our decision to purchase is a reflection of our confidence in and commitment to Hawaii’s future,” said Stanley M. Kuriyama, A&B chairman and chief executive officer. “This acquisition dramatically accelerates our strategy of migrating our Mainland portfolio to Hawaii, diversifies our holdings with a major investment in the Windward side of Oahu, and improves the quality of earnings from our overall commercial portfolio. We look forward to working with the Kailua community in meeting the community’s needs and building upon the successes achieved by Kaneohe Ranch and HKL Castle Foundation.”

“We take a long-term perspective on our community development efforts and strive to work closely with communities to meet their changing needs,” said Christopher J. Benjamin, A&B president and chief operating officer. “Kailua is a thriving and vibrant community, and we intend to partner with the community in maintaining the livability, desirability and beauty of Kailua town.”

“The acquisition solidifies A&B’s position as the second largest retail owner in Hawaii,” Benjamin added. “The portfolio includes 386,000 square feet of prime retail and light industrial space in the heart of Kailua, and over 50 acres improved with retail and other commercial centers that are ground leased to third-parties in Kailua and other parts of Windward Oahu and urban Honolulu. The retail portion of the portfolio comprises the majority of the grocery-anchored centers in Kailua, and includes the only Whole Foods store in Windward Oahu.”

“When this transaction and the related Mainland property sales close, we will have shifted, in less than a year, approximately two-thirds of our Mainland net operating income to Hawaii, where we believe we are better able to leverage our local market knowledge,” continued Benjamin. “Eighty percent of our commercial portfolio net operating income will now come from Hawaii assets versus 42% at the beginning of 2013.”

The portfolio includes a diversified and well-occupied mix of fully entitled commercial properties:

Four grocery- and drug store-anchored centers comprising approximately 190,000 square feet of gross leasable area (GLA) on 13 acres of nearly-contiguous land in downtown Kailua. These centers are 98% occupied and anchored by Whole Foods, Longs/CVS Drugs, and Hawaii supermarket chains Foodland and Times Supermarket.

Twenty-two properties, covering 51 acres, that are ground leased to third-parties and developed with a variety of commercial improvements.

Thirteen of these ground leases (15 acres) are located in downtown Kailua and improved with 260,000 square feet of GLA, including a Safeway-anchored shopping center and a Macy’s department store. The remaining nine ground leases (36 acres) are located elsewhere in Windward Oahu and urban Honolulu, and are improved with 500,000 square feet of GLA, including three grocery-anchored shopping centers, one mixed-use office and retail center, and two auto dealerships.

The portfolio also includes 76 acres of agriculture-zoned land, and 509 acres of preservation-zoned land, in Kailua.

The Company intends to fund over 70% of the purchase price with proceeds from the sale of a number of its U.S. Mainland commercial properties via tax-deferred 1031 exchanges, with the balance of the funding to come from other 1031 proceeds. The Company expects to temporarily finance the difference between cash funding needs at close and the receipt of cash from planned dispositions.

The Hawai’i Community Foundation is pleased to announce that it has awarded $437,000 in grants to nine projects across the islands aimed at the protection and restoration of Hawai’i’s coastal areas. Funding for the projects is made possible through a three year partnership between the Hawai’i Community Foundation, the National Oceanic and Atmospheric Administration’s (NOAA) Restoration Center and the Harold K.L. Castle Foundation. The community-based grant program was started with the strong support of Senator Inouye, and actively bridges cultural and environmental stewardship efforts. Since 2009, the partnership has provided more than $1.5 million in funding to community organizations repairing fishponds, removing invasive species, and preventing polluted runoff in coastal waters on all major Hawaiian islands.

“In Hawai’i clean water and healthy lands are fundamental to our quality of life,” said Josh Stanbro, director of Environment and Sustainability at the Hawai’i Community Foundation. “We commend these community groups for taking responsibility in their own backyards, and putting in countless hours to protect our most treasured sites.”

“This public-private initiative is a win-win, and demonstrates how much more we can do when we work together,” said Senator Daniel K. Inouye. “Engaging with the community upfront provides the best chance of an enduring and sustained effort. I will continue to advocate for a return of earmarks to be able to support efforts such as this because it is a justified and worthy federal investment.”

The Hawai’i Community Foundation is also proactively seeking funding from private donors and foundations to keep the successful grant program going in 2013 and beyond.

Hawai’i’s unique coastal resources are increasingly threatened by invasive species, climate change impacts, and inappropriate development. Wetlands and other coastal habitat help filter sediment and pollutants, replenish fishing stocks, and support traditional cultural practices. During the summer, the voyaging canoe Hōkule’a spent time at several of the restoration projects, lending her crew as volunteers working shoulder to shoulder with local residents because of the strong environmental-cultural ties.

Taro fields at Kāko’o ‘Ōiwi.

Specific goals for the partnership include restoration of coral reef habitat, coastal wetlands and estuaries, traditional coastal fishponds, riparian zones/stream habitat, and land-based sources of pollution mitigation. Coastal habitats support approximately 25 percent of Hawai’i’s reef fish, 32 percent of marine invertebrates, and 90 percent of stream animals that are found nowhere else on the planet.

“We know how hard our ancestors worked to keep things in balance,” said Kanekoa Schultz, whose Kāko’o ‘Ōiwi restoration project was a 2011-2012 grant recipient. “This grant is going to teach a new generation how to work to support the natural systems that in the end take care of us.”

Projects funded this year include:

“Loko ‘Eā Fishpond Habitat Restoration Project”- Undertaken by Alu Like, Inc., this project will restore the cultural, biological, and socio-economic prosperity of Loko ‘Eā Fishpond. The goal of the project is to conduct habitat and fishpond restoration utilizing community collaboration while integrating traditional Hawaiian knowledge.

“Bridging Land, Sea and Native Cultural Practices Through Restoration on Kaho’olawe Island”- Undertaken by the Kaho’olawe Island Reserve Commission and fiscally sponsored by Tri-Isle Resource Development Council, Inc., this project proposes a land-based restoration project that will help hold and improve soil health, prevent runoff, and improve water quality in the adjacent near-shore area.

“Watershed Restoration Program/ Mangrove Eradication Project Phase I”- Undertaken by Kaiola Canoe Club, the project will restore approximately one acre of the Huleia River riverbank which is being severely overgrown by red mangrove, reaching in some areas up to 40 feet in height.

“The Hawai’i Youth Conservation Corps”- Undertaken by KUPU, this project will increase the number of Hawai`i Youth Conservation Corp members available to local conservation organizations, by working with over 40 conservation groups over six islands to help add capacity during both their summer and year-round programs.

“Invasive Marine Algae Removal at Maunalua Bay, O’ahu”-Undertaken by Mālama Maunalua, this project will train six new volunteer coordinators and four interns to focus on doubling the amount of community workdays that they can do in a year. As a result, one acre of Maunalua Bay will be cleared of invasive algae and several other benefits (maintenance on previously cleared areas, monitoring, recycling of algae as soil amendment, etc) will simultaneously occur.

“Anapuka Dune Restoration and Revegetation Study”- Undertaken by Moloka’i Land Trust, this project consists of partial assistance for the continued restoration of 45 acres in a coastal dune ecosystem, including habitat modifying invasive species removal, weed control, ungulate control, and restoration/replanting of native species to help offset sediment transport into the adjacent nearshore marine ecosystem.

“Streambed repairs to reduce silty run off at Nāpili Bay”- Undertaken by the Nāpili Bay and Beach Foundation, Inc. this project will remove woody invasive species from a 600 foot stream area in West Maui, and replant this area with native species. This will shore up the stream bank and help filter sediment before it emerges into Nāpili Bay.

“Coastal Fishpond Restoration at Kīholo, Hawai’i”- Undertaken by the Nature Conservancy of Hawai’i, this project will clear invasive vegetation from around the side and rear portions of two inland fishponds at Kīholo to increase juvenile fish habitat and pond water quality.

“Kahului Harbor Ho’aloha Beach Park and Shoreline Restoration”- Undertaken by the Wailuku Community Managed Marine Area and fiscally sponsored by Tri-Isle Resource Conservation & Development Council, Inc., this project will replant and restore approximately 2,500 feet of coastal shoreline, and begin reintroducing native limu in the nearshore water at Kahului. The project seeks to replant strategic areas and channel foot traffic in marked corridors to reduce coastal erosion and siltation of the nearshore water.